INTERGOVERNMENTAL COOPERATION ACT AGREEMENTS

The Intergovernmental Cooperation Act, 31 U.S.C. § 6505, provides that the President may prescribe statistical and other studies and compilations, development projects, technical tests and evaluations, technical information, training activities, surveys, reports, documents, and other similar services that an executive agency is especially competent and authorized by law to provide.  The services prescribed must be consistent with and further the policy of the United States Government of relying on the private enterprise system to provide services reasonably and quickly available through ordinary business channels.  Executive branch agencies may provide services prescribed by the President to a State or local government when (1) written request is made by the State or local government; and (2) payment of pay and all other identifiable costs of providing the services is made to the executive agency by the State or local government making the request.  Payment received by an executive agency for providing services under this section shall be deposited to the credit of the principal appropriation from which the cost of providing the services has been paid or will be charged.  OMB Circular A-97 sets forth guidance concerning the Intergovernmental Cooperation Act.  It provides that agencies may provide the following services to a state or local government pursuant to the Act:

1. Any existing statistical or other studies and compilations, results of technical tests and evaluations, technical information, surveys, reports, and documents, and any such materials which may be developed or prepared in the future to meet the needs of the Federal Government or to carry out the normal program responsibilities of the Federal agencies involved.

2. Preparation of statistical and other studies and compilations, technical tests and evaluations, technical information, surveys, reports, and documents, and assistance in the conduct of such activities and in the preparation of such materials, provided they are of a type similar to those which the Federal agency is authorized by law to conduct or prepare.

3. Training of the type which the Federal agency is authorized by law to conduct for Federal personnel and others or which is similar to such training.

4. Technical aid in the preparation of proposals for development and other projects, for which the Federal agency provides grants-in-aid or other assistance, provided such aid primarily strengthens the ability of the recipient in developing its own capacity to prepare proposals.

5. Technical information, data processing, communications and personnel management systems services which the Federal agency normally provides for itself or others under existing authorities.

Such services may not be provided unless the agency providing the services is providing similar services for its own use under the policies set forth in OMB Circular A-76.  In addition, in accordance with the policies set forth in Circular No. A-76, the requesting entity must certify that such services cannot be procured reasonably and expeditiously by it through ordinary business channels.  Such services may not be provided if they require any additions of staff or if they involve outlays for additional equipment or other facilities solely for the purpose of providing such services, except where the costs thereof are charged to the user of such services. No staff additions may be made which impede the implementation of or adherence to the employment ceilings contained in OMB guidance or directives.  In the event a request for a service is denied, the Federal agency shall furnish the entity making the request with a statement indicating the reasons for the denial.  OMB Circular A-97 also states that when a Federal agency provides services under the Intergovernmental Cooperation Act, full cost recovery must be achieved; payment of all identifiable direct or indirect costs of performing such services must be made.    

NOTE: Agreements are subject to legal review and clearance in accordance with your office's policies and procedures. For advice on whether a certain transaction should be undertaken pursuant to the Intergovernmental Cooperation Act or some other authority, contact the General Law Division, Office of the Assistant General Counsel for Administration, at (202) 482-5391.

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